Revealed preference theory on the choice of lotteries

Article Abstract:

A revealed preference characterization of choice behavior consistent with expected utility maximization is presented and can be tested with any choice correspondence and any compact set of prizes. Expected utility maximization requires that there is no way to compound lotteries such that the probability distribution over the final prizes from the chosen lotteries of each observation is equivalent to that generated by the rejected lotteries of each observation. The characterization demonstrates the consistency of a decision-marker's choice behavior.

Models, Lotteries

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Axioms for preferences revealing subjective uncertainty and uncertainty aversion

Article Abstract:

The subjectively perceived uncertainty and individual degree of uncertainty aversion of a decision maker is analyzed.

Europe, Uncertainty

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Subjective expected utility theory without states of the world

Article Abstract:

A theory without any proof for decision-making under uncertainty that rolls out with the state-space is developed.

United States

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